Customer Service Lessons To Learn From The Banking Industry

You don’t have to be in banking to appreciate customer service insights from the industry. A recent survey from Clarabridge on the banking industry is a customer service wakeup call for any and all types of business, in any industry. And, while the numbers shared below may not track exactly with your industry, many of them will, and the implications of the numbers surely do.

Clarabridge is a leading provider of customer experience management solutions for some of the world’s top brands. It recently surveyed 2,400 consumers in the United States between the ages of 18 and 59 regarding their bank experiences. The data and trends that emerged from the survey were interesting and, as mentioned, cross over into many other industries.

What intrigued me most was the way consumers are using technology for service versus an in-person or phone experience. Also, the information on millennials is of the utmost importance. While I don’t like to stereotype, millennials do have a different way of doing business, and if they are your customers you better understand their expectations when it comes to how they like to buy and be served.

• The Clarabridge study found that just 67% of banking customers placed a customer service call to their bank. Only 42% of millennials have placed a customer service call. That’s 25% less than the national average.

Lesson: For the last year I’ve noticed that use of the phone as a primary mode of communication between customers and companies is trending down. While the phone has traditionally been the primary communication channel, in the next few years it will continue to decline and become one of the least used channels, mainly just a fallback when there is no choice but to get a human on the phone.

By the way, millennials now account for 27% of the population (the largest generation in the United States). Banks – and all other types of business – must find a new way to do business and connect with customers. Most millennials don’t do business the same way their parents did. The lower number of calls to customer support make sense. Rather than the phone, millennials turn to social media.

• And, speaking of social media … the Clarabridge study shows that 35% of customer service issues that are tweeted to banks go unresolved.

Lesson: Can any business afford to upset – or possibly even lose – up to 35% of its customers? Social media customer service is still a big opportunity. I’ve written about this (often) in the past. Slow response times or no response at all are unacceptable in any business. You will lose your customer’s confidence, your credibility – and you may even lose your customer.

• Almost two-thirds (63%) of customers have used their phones to perform routine banking tasks. Sixty-one% have downloaded their bank’s app, and 37% of millennials use their bank’s mobile app as the main way they interact with their bank.

Lesson: As retailers and other industries struggle to find a balance between doing business online and onsite, banks are struggling as well. And the online experience you provide is going to become “table stakes” if you want to compete. Self-service solutions are gaining in popularity and people are opting out of the traditional in-person or phone support to quickly (and quickly is the operative word) get the answers and help they need. And, the cost of creating a customized app to deliver self-service support (and more) is becoming very affordable to virtually any type of business.

All businesses face similar issues. Many of the KPI’s are the same. Every business wants customers, and tries to eliminate customer churn. The goals of every business are to grow revenue, retain customers, etc. Be it banking, manufacturing, retailing – really any type of business – even if the survey numbers are different, they all point to business organizations trying to achieve better results.

I am the Chief Amazement Officer at Shepard Presentations. As a customer service and experience expert, I help organizations create amazing customer and employee experiences. My books have appeared on bestseller lists including the New York Times, Wall Street Journal, USA To...